BUYING A LOFT IN LOS ANGELES? GOLDUNION ON TURNING OLD GOLD INTO CLOSING CASH

Anyone who has toured lofts in Downtown LA, the Arts District or Long Beach knows the sticker price is only the beginning. Between the down payment, closing costs, HOA dues and the first few months of furniture, buyers often come up a few thousand dollars short right when they need the money most. Before you dip into an emergency fund, take a look in your jewelry box.

The hidden costs of buying a loft

Loft buildings are often converted warehouses or historic commercial spaces, and they come with their own set of expenses. Monthly HOA fees in older buildings can be significant, since they cover elevators, roofs, seismic work and shared spaces. Many buyers also face a special assessment at some point, and lenders want to see that you can handle those costs on top of your mortgage.

Closing costs in California typically include escrow fees, title insurance, lender fees and prepaid items such as property taxes and homeowners insurance. Add movers, window treatments for those tall loft windows and a few pieces of furniture that fit an open floor plan, and the total adds up quickly.

Why old gold is worth a second look

Most households have gold they no longer use: a chain with a broken clasp, a single earring, an old class ring, a bracelet that never gets worn. Gold is priced by weight and purity, so even broken pieces have value. A 14K item contains about 58.3% pure gold, an 18K item 75%. A small handful of pieces can be worth more than many people expect, especially when the market price of gold is high.

Selling them will not buy you a loft, but it can cover a moving truck, an inspection, appraisal fees or part of your closing costs. That is money you do not have to put on a credit card during an already expensive month, and one less balance to carry into your first year as a homeowner.

How to sell without slowing down your mortgage

Your lender will look closely at your bank statements before closing, so any money you add to your account should be easy to explain. A few habits keep things simple:

• Sell to an established dealer that gives you a written receipt listing the items, their weight and the amount paid.
• Ask to be paid by bank transfer or check rather than cash, so the deposit matches the receipt.
• Deposit the full amount at once and keep the receipt with your loan documents.
• Tell your loan officer before you sell, especially if you are close to closing.

When you sell gold jewelry, compare at least two offers and ask each buyer which market price they used. A reputable dealer will weigh your items in front of you and let you walk away if the number does not work for you.

Selling gold in the Los Angeles area

Los Angeles buyers have several options for selling gold in person. GoldUnion in Burbank, for example, appraises jewelry, coins, bars, watches and even broken or scrap pieces for free, and pays by bank transfer or check. The company also has branches in West Hollywood, Culver City, Torrance, Malibu and Valencia, and offers appraisals at home for people who would rather not carry their jewelry across town.

Bring a valid photo ID, since buyers are required to record who they purchase precious metals from, and take a moment to separate the pieces with real sentimental value from the ones you will not miss.

A small step toward the keys

Buying a loft in Los Angeles is a big financial step, and every dollar you do not have to borrow helps. Turning unused gold into documented cash is a simple way to soften the closing month, as long as the sale is clean, the paperwork is kept and your loan officer is in the loop.